Sunday 25 May 2014

Traders Start Using PayPal Instead of Traditional Bank EFTPOS

A couple of QVM market traders have become early adopters of the PayPal mobile EFTPOS system.
PayPal Here involves the use of a smartphone or iPad connected wirelessly to a special PayPal card reader. The physical sales process involves entering the transaction details on your smartphone or iPad and then handing the card reader to your customer who inserts the card, enters their pin number, and presses ok. The completed transaction shows up on your smartphone or iPad.
Why adopt the PayPal system? Well, it comes down to economics and it is a matter of doing the sums for your business. Current users of the mobile EFTPOS facilities provided by banks will be familiar with the monthly minimum $45-50 fees. Typically this is made up of a $25 equipment fee plus a minimum $20 service fee which is part of the percentage rate charged on transactions (usually 1-1.5%).
We understand that PayPal is charging a flat 1.95% for chip and pin transactions, and 2.95% for swipe transactions – chip and pin is cheaper because it is more secure. There is an upfront fee of $99 for the card reader but we understand that the flat percentage fee is the only other fee involved. You may be involved in some increased data usage on your smartphone or iPad.
Our early adopters are actually waiting on the release of the latest app from PayPal on 28th May before they start using the system but we will keep in touch with them and report on progress next weekend.